Financial Services

Specialist expertise across multiple financial services sectors

Our financial services sector team combines a broad range of experience across the insurance and reinsurance underwriting, insurance broking, life and pensions, banking and wealth management industries.

Members of our advisory team have worked in an operational, management or advisory capacity for a wide variety of companies in the sector, including:

Team

Key financial services market themes for 2017:

1

Digital Payments Providers Under Pressure

Mounting consumer pressure for faster, seamless, cheaper and more secure digital payments will press companies to collaborate and move quickly in order to keep up. This will also fuel consolidation in the industry. The latest development is the global fund Hellman & Friedman, which is fronting an investor group, bidding to acquire the Nordic payment system provider NETS for $5.1bn. Hellman & Friedman wants to use the NETS platform for European consolidation of the payment service industry and subsequent expansion into e-commerce.

2

Largest Russian Institution Under Watch

Russia’s Central Bank announced the launch of a financial rehabilitation program for Otkritie Group, the country’s largest private financial institution. According to Russian monetary authority, Otkritie requires a significant capital increase and extensive measures to improve its financial health. As a result of the process, Russia’s Central Bank may take up to 75% equity position in the group.

3

Banks Continue to Embrace Cloud & AI Tech

Banks are exploring opportunities for IT to increase their range of services and value proposition. There are plans, too, to develop a legal chat-bot and other initiatives in the high-tech area. M&A opportunities may arise for smaller IT companies that develop FinTech solutions that can be “plugged in” to larger corporates.

4

Blockchain in Focus, but Uncertainty Lingers

Central banks and governments continue to voice their views on Bitcoin and other cryptocurrencies, which has resulted in prices becoming even more volatile than usual. One example is the recent ban imposed by Chinese authorities on initial coin offerings in the country, which led to a dramatic drop in Bitcoin prices and put a question mark on the future of a Chinese blockchain-based economy.

International M&A trends & market analysis

The following financial services sector market data and commentary are produced by our market research team and global financial services sector specialists as part of our semi-annual all sectors global report. The data is organised into all financial services businesses valued over $5m “All Market” and financial services businesses valued in the range $5m to $150m the “Lower-Mid Market”.

Historic valuation trends:The following chart shows international financial services sector business valuations over time, based on semi-annually averaged transactional data:

Regional valuation variation:The following chart shows international financial services sector business valuations by region, based on listed company multiples as at mid August 2017:

Sub-sector valuation variation:The following chart shows international financial services sector business valuations by sub-sector, based on listed company multiples as at mid August 2017: